NOTIONAL PAY / PENSION FIXATION

     NOTIONAL FIXATION OF PAY / PENSION- AT A GLANCE.

How to arrive the Notional fixation of pay / Pension.

Example:  Take a Rank of Sgt- Air Force   Group- X  Qualifying service- 20 yrs,

Discharged  on 31-3- 2006.

We should know the Last  pay drawn- for calculation.

Here :

Last Drawn Pay:  10230   - Grade pay- 2800 (6^th CPC)  MSP=2000

                               Class Pay:240  and X Group pay: 1400-

As per  2.57 method-  Sgt- Gp-X  QS-20 yrs-  pension= 9055 X2.57= 23272/-

Now, for arriving the Notional Pay-  you  arrive- Last pay + Grade pay= 10230+2800=  13030--------------This is pay as on 1-1-2006

Now , you go to Concordance Table- 12  of CDA cir 608--- for the Rank of SGT –X

You match this 13030 in the table-  it falls in the Min- Max – 12810-13190- for this range, the Notional Rate is 33900-…………OK     This is the Basic

Revised Pay will be=  33900  + MSP- 5200 + Class pay-240 + X-Gp pay-6200

It comes to  = 33900+5200+240+6200=45540-  Notional Pay 

Hence the Notional pension-  50% of Notional pay= 45540/2=22770/---

The pensioner is already drawing his pension as 23272/-

So, there is no benefit for him.

For Pre-1996 retiriees, there will be no MSP and Grade pay:  They have to take Last drawn Pay  and  read the corresponding  Notional pay in the table. 
eg:  WO, Gp-X  say 21 yrs QS-   Discharged in  August 1995-Last drawn pay= 2080
Refer Table no: 34---- the notional pay is 44900  +5200+6200=56300
Pension  = 56300/2= 28150  .  Like wise  the calculation.

For  Y Group pensioners,  the  X-group pay  of 6200 not to be added. Rest is the same.

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NOTE:  Here. ,the Last pay drawn will vary according to the increment  received on the same Rank-

At present, we calculate flatly on the total service  like 20 yrs –Sgt  ,whether he held the Rank for one year or  5 yrs.

But, in the Notional fixation, the increment is taken into account  and the pension will very.

If the last Pay drawn is known, we can calculate the Notional Rate as per the above method.

This is the method  of calculation as compared with  a New  e-PPO.